Why suddenly downtrend in market ??? Is something happened ???
Point one: It is because of "COVID-19 Coronavirus Outbreak", which was told it would reach the peek on mid February. Now it is clear it will take much more time, even the numbers of infections officially go back. Still there is no proved medication nor what so ever found against the virus. Until they have such a tool, it will take around 1.5 year. This is the average time to find such antidote During this time, doctors just can do what they believe is best, but not much else.
Point two: The international trade relations with China now starts to become complicated, as many factory's do not work at full and many airlines have canceled all the flights to China. This means also trading volumes have now turned down and this starts to show effects all over the world in many countries economies. The situation is still unclear, but it is already proved and seen this pandemic has now a bigger impact on the worlds economies ever expected before.
Point three: Should we panic? No, in no way. Even if the virus is not handled in one or two years, then it will be known as an other virus like flue or what so ever. The Chines do all they can now, after doing a bad job at the begin by trying to conceal the outbreak of a new virus. If China, the mainland of the pandemic is able to control the virus, then there should be no problems for the rest of the world. If the virus finds a way to get homeland outside China with not being recognized in the right time, then we have a new situation.
Point four: Should you now go long or short? Decide on your knowledge and experience you have on chart analyses, fundamentals and strategies. If you feel unsure, concentrate on the senior traders here in this forum as they survived for a long time in the market.
All the best DP